ANNUAL REPORT 2012
In 2012, İşbank’s total assets grew by 8.5% to TL 175.4 billion.
In 2012, İşbank increased its total loans by 16.5% year-on-year and remained the sector’s leader in total loans by further increasing its
market share. During this period, TL-denominated loans were up by 21.4%while the growth in foreign currency loans was 7.6%, and the
share of Turkish lira loans to total loans went up from 64.2% in 2011 to 66.9% in 2012.
As a result of the 11.0% shrinkage in the securities portfolio and the strong growth in total loans in 2012, assets structure continued to
change in favor of loans. 56.7% at year-end 2011, the share of loans to total assets rose to 60.8% in 2012.
During 2012, NPL portfolio rose in the entire industry, and the share of non-performing loans to total loans showed an upward trend in the
sector. On the other hand, the ratio of İşbank’s non-performing loans to total loans declined from 2.1% in 2011 to 1.9% at year-end 2012, a
result of the solid collection performance and the sales made from the NPL portfolio.
Total deposits increased by 7.2% to TL 105.4 billion in 2012. In this period, the Bank made effective use of repo transactions and securities
issues within the frame of cost and maturity management, as well as deposits that made up 60.1% of total liabilities. Issued securities
grew by 68.3% and rose to TL 6.4 billion. On the other hand, the Bank arranged a 10-year subordinated loan in the amount of USD 1 billion
from international markets in the fourth quarter of 2012, within the framework of the policies that seek to create long-term resources and
ensure capital optimization.
In 2012, İşbank’s shareholders’ equity went up by 26.8% to TL 22.7 billion. The Bank posted TL 3.3 billion in net profit for the period which
was one of the key drivers behind the high rate of increase in shareholders’ equity. Despite the negative impact of Basel II requirements that
were put into force in Turkey in the second half of 2012, the capital adequacy ratio rose from 14.1% in 2011 to 16.3% in 2012 as a result of
the funding ability created by profitability, the subordinated loan, and other measures directed towards capital employment.
The net interest margin was positively influenced by the decline in interest rates applied on deposits, cost-oriented resource management
implemented, and the effective use of the reserve option mechanism during the reporting period. The rise in the net interest margin
throughout the year and the healthy expansion realized in total loans resulted in 29.9% year-on growth in net interest income of İşbank.
Other factors that contributed favorably to profitability included the 19.4% rise in net fees and commissions income, and the 92.9% surge
in the net trading income item.
Following these increases in the core operating income items, İşbank’s net profit for the period increased by 24.1% year-on-year, while its
average return on assets rose from 1.8% in 2011 to 2.0% in 2012. In parallel with these developments, average return on equity went up
from 15.2% in 2011 to 16.5% in 2012.
Financial Condition, Profitability and Solvency